Pedestrians walk past a share prices board in Tokyo. Japanese stocks closed down 204.41 points to 19,206.99 yesterday.
AFP/Tokyo
Asian markets mostly rose yesterday after China’s decision to ease mortgage rules fuelled hopes for further stimulus measures, but afternoon profit-taking pared a morning rally, with Tokyo and Shanghai ending more than one% lower.
While traders were given a strong lead from Wall Street, there is lingering nervousness over Greece’s attempts to reform its bailout terms, putting downward pressure on the euro.
Sydney added 0.78%, or 45.4 points, to 5,891.5 and Seoul put on 0.54%, or 10.99 points, to 2,041.03. Hong Kong gained 0.18%, or 45.77 points, to 24,900.89.
But Tokyo—which at one point yesterday was up almost 1%—slipped 1.05%, or 204.41 points, to finish at 19,206.99 as investors booked profits on the last day of the financial year.
However, the market still rose more than 11% in the January-March quarter.
And Shanghai, which has surged more than 13% in the past three weeks, sank 1.02%, or 38.67 points, to 3,747.90.
Morning trade saw regional investors pick up where their US and European counterparts left off after the People’s Bank of China on Monday lowered minimum downpayments on second homes from 60-70% to 40% in a bid to boost the slowing economy. In other markets, Bangkok ended up 0.63%, or 9.43 points, at 1,505.94; Bumrungrad Hospital, a popular destination for medical tourists, jumped 3.40% to 152baht while Kasikornbank rose 0.88% to 229baht.
Jakarta rose 1.47%, or 80.02 points, to 5,518.68; Indonesian-based automotive business Astra International rose 2.39% to 8,575 rupiah, while food processor Indofood Sukses Makmur fell 0.33% to 7,450 rupiah.
Kuala Lumpur gained 0.49%, or 8.95 points, to close at 1,830.78; AMMB Holdings added 0.95% to 6.36 ringgit and Tenaga Nasional rose 0.28% to 14.36. Telekom Malaysia fell 0.55% to 7.27 ringgit.
Singapore eased 0.21%, or 7.25 points, to 3,447.01; oil rig maker Keppel Corp was down 0.44% to Sg$9while Singapore Telecom gained 0.46% to Sg$4.38.
Taipei rose 0.68%, or 64.57 points, to 9,586.44; Taiwan Semiconductor Manufacturing Co closed 2.11% higher at Tw$145.5 while Hon Hai Precision Industry shed 2.55% to Tw$91.6.
Wellington added 0.22%, or 12.70 points, to 5,833.98; Spark gained 1.71% to NZ$2.98 and Air New Zealand was up 0.55% at NZ$2.72.
Manila closed 0.52% higher, adding 41.08 points to 7,940.49; Ayala Land gained 2.93% to 38.70 pesos but Nickel Asia Corp slumped 10.45% to 24 pesos on concerns about growing stockpiles of nickel.
The announcement came after the bank’s head Zhou Xiaochuan at the weekend hinted at fresh measures to fend off deflation, while Premier Li Keqiang said at the start of the month the government had the firepower to support the economy.
But the rally weakened as the day went on.
“People are starting to take profits on recent gains,” Yan Liu, a trader at Guosen Securities Co in Shenzhen, told Bloomberg News.
“The correction won’t be long-lived though as the undercurrent in the market is very strong, with more people ready to jump in on declines.”
On Wall Street Monday the Dow rose 1.49%, the S&P 500 gained 1.22% and the Nasdaq advanced 1.15%. And in Europe the Frankfurt DAX 30 jumped 1.83%, the CAC 40 in Paris ended 0.98% higher and London’s FTSE 100 climbed 0.53%.
In currency markets the euro retreated as dealers track the bailout negotiations between Greece and its creditors.
The single currency bought $1.0757 and ¥129.21 yesterday against $1.0825 and ¥130.10 in US trade.
The dollar was at ¥120.16 yesterday, down from ¥120.18 in New York.
Experts from the IMF and the EU are scrutinising a list of reforms proposed by Athens to try to unblock a new €7.2bn tranche of loans and avoid a debt default.
However, Greece was told the list needs more work and details. “We’re not there yet,” European Commission spokesman Margaritis Schinas warned.
But he added, “the fact that experts worked through the entire weekend and continue today is a positive sign.”
Oil prices edged down, with speculation growing that any nuclear deal between Iran and the international community could see sanctions on the country lifted, leading to more oil hitting global markets.
US benchmark West Texas Intermediate fell 85 cents to $47.83 while Brent eased 65 cents to $55.64.
Gold fetched $1,183.06 against $1,185.40 late Monday.
